BlackRock is the largest investor corporation in history. It uses a fund made up of clients’ money to buy shares and assets of other companies.
Since 1988, the company has become a global monopoly, and in 1998 it went public (14% of shares can be bought by any investor). Since 2020, the company has been buying up securities of the Federal Reserve, and also provides consulting services.
The secret of success is the “Aladdin” technology. This robot gives predictions and helps make successful stock and other investments, for example the corporation has survived mergers. Recently, BlackRock has started investing in Bitcoin and mining corporations. This is a new direction for the corporation and that is what our article will be about.
BlackRock: Introduction to the investment giant
BlackRock is the largest investment company in the world, has a presence in 30 countries and 70 offices on every continent except Australia and Antarctica. Its fortune is over 37 billion and assets in its fund and under its management are 9.4 trillion! The corporation invests clients’ money in different companies. The BlackRock investment fund allowed to buy out 30% of assets in thousands of companies. No other player on the market owns such a large block of shares. In fact, BlackRock owns a controlling stake in thousands of companies. It is the largest institutional investor in the world.
Shares of corporations, in which BlackRock is the main investor, although traded on the stock market, are growing too slowly. This situation does not suit BlackRock and the company has turned its attention to cryptocurrencies.
Cryptocurrency is a digital decentralized currency (CDC), not under the control of a country and owned only by users.
Investing in cryptocurrency and miners: Why is it relevant?
Since the summer of 2022, the cryptocurrency market is cryptozyme – crypto prices are almost not rising, only for some coins and that temporarily. Also in November 2022, the largest crypto exchange FTX went bankrupt, the price of crypto fell again. And its price depends only on the interest in it, so it has high volatility.
If crypto is bought, it will help to get it out of cryptozyme and cryptocurrencies will increase in price. Many people are trying to buy CDV during the fall and sell during the rise.
According to financial news reports, a Bitcoin-ETF is getting ready to launch. ETF funds buy stocks, split them up and sell them. But Bitcoin is already split into 100,000,000,000 pieces, so what’s the point then? A Bitcoin-ETF would be able to be registered as a stock. And if Bitcoin can be registered, so can Efirium and the rest can be registered too. The SEC is threatening to equate trading in ETFs to trading in unregistered securities. But if, through ETF funds, cryptocurrencies are registered as “micro stocks”, trading them will become 100% legal. This will bring back the faith in cryptocurrencies in the U.S., and perhaps then in other countries, even China!
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BlackRock and Cryptocurrency: Assets and Strategies.
Asset management of companies, is a “field” where BlackRock has no competitors. But in the world of cryptocurrencies, BlackRock is a new player, and BlackRock’s strategy for Bitcoin from such a financial giant can only be one – investment. The institutional investment in Bitcoin has so far been not exactly in the coin, but in miners’ shares. The purchase cost more than 400 million, the company bought 4 of the largest mining companies. But BlackRock couldn’t just invest in CDV and in miner shares. BlackRock bought the shares of the mining companies because the latter have grown several times in 2023! Apparently, Aladdin thinks that big profits are possible.
The stock market in the U.S. can be considered just a warm-up before BlackRock invests in digital assets. After all, crypto is developing not only in the U.S., but all over the world. Volatility and huge risks for funds do not leave the corporation a chance, but a mistake, and the competitors are new, aimed only at the CDS, so more experienced. Let’s see what will come out of it.
Impact of BlackRock’s decisions on the cryptocurrency market
BlackRock’s institutional investment in Bicoin should pay off within 6-12 months, if it doesn’t – the consequences will be devastating. After all, BlackRock considers Bitcoin and cryptocurrency a hedge against inflation, even if only a tool in the case of asset diversification. But in sum with ETF approval, whale movement, and the infusion of funds into crypto – the DTW should rise. Usually the first DCE that grows is Bitcoin.
The company is very serious, even filing with the SEC. Apparently BlackRock’s role in the cryptocurrency market is to bring crypto out of the prolonged cryptozyme. Recall that after the collapse of the DTB in April-June 2022, no digital currency has yet returned to the same price or capitalization level (except Bitcoin-Cash and USDT).
Results and outlook
BlackRock often makes successful investments, otherwise it wouldn’t be the world’s #1 investment giant, but for all that, digital currency is a brand new asset for BlackRock. Even those who are just starting out in crypto trading and arbitrage pay attention to Bitokine first. This crypto is like an indicator, because it makes up about 50% of the entire market capitalization, its growth and falls are often reflected in other coins and tokens. BlackRock’s investment in Bitcoin will definitely grow, and after the introduction of ETFs, the growth will be even higher. After the growth there will be a correction (about 10-15%), but the collapse will be only when the market is oversaturated. Halving should prevent this, and it is expected in the spring of 2024.
If BlackRock invests in the future of Bitcoin not at once tens and hundreds of millions, but in parts and gradually, it will get a consistent price growth. Experts have estimated the price jump from ETFs alone at 70,000 dollars, at least, which would break the previous record of 69,000. The most optimistic traders believe that the growth will be up to 120,000 dollars, even with a correction of 20%, Bitcoin will cost more than 90,000. It is difficult to talk about the growth of other DCEs, as their growth depends on many factors and it is important to understand which cryptocurrency we are talking about.
Conclusion
Bitcoin is an asset whose volatility is legendary and has been prophesied to rise to $100,000 and even $500,000 several times. But a corporation as big as BlackRock hasn’t yet turned its attention to digital assets. Plus, this is the first time ETF funds are looking to buy and sell crypto.
BlackRock’s strategy for Bitcoin isn’t clear yet, perhaps continuing to buy up pools of miners and then dabbling in cryptocurrency. Well, couldn’t BlackRock and Tether have colluded and invested in an unreliable asset for capital growth? Yes, the issuer of the top-stablecoin (USDT) decided to buy Bitcoin for 10-15% gains.
Buying a share of Bitcoin-ETF is possible even for small investors, not just corporations like BlackRock. However, you should not forget about diversification, ETF funds promote this.
If the forecasts are too good and there will be a collapse, it is best to buy cryptocurrency through our cryptocurrency exchanger “AnyExchange”. We can instantly withdraw crypto into fiat currency and vice versa. If necessary, you can make a money transfer with the help of our service. We will deliver cash by courier directly to you, even if you are abroad.
